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Clorox: Reasonably Valued But Not Cheap Yet

Jun. 02, 2022 1:58 PM ETThe Clorox Company (CLX)19 Comments


  • In a base case scenario, I see Clorox shares as fairly valued today.
  • That said, there's a good argument for Clorox being able to turn margins around and get the business back on track by year-end 2024.
  • I see a path to a $175 share price in 2024 if the company is able to stabilize its profit margins and get costs under control.
  • The potential upside is not enough to get me to open a position today, however. I'd prefer an entry price in the $120s.
  • Looking for a helping hand in the market? Members of Ian's Insider Corner get exclusive ideas and guidance to navigate any climate. Learn More »

Mujer compra lavado de polvo

97/E+ via Getty Images

After a big run-up in 2020, shares of Clorox (NYSE:CLX) have washed out completely. In fact, the cleaning products maker is now trading well below where it did prior to the start of the pandemic:


Data by YCharts

CLX earnings estimates

CLX earnings estimates (Seeking Alpha)

Data by YCharts

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This article was written by

Ian Bezek profile picture
Research and trade alerts from a hedge fund pro with a global outlook.

Ian worked for Kerrisdale, a New York activist hedge fund, for three years, before moving to Latin America to pursue entrepreneurial opportunities there. His Ian's Insider Corner service provides live chat, model portfolios, full access and updates to his "IMF" portfolio, along with a weekly newsletter which expands on these topics.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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